A new investment fund designed for personal injury claimants recovering lump sum damages awards has been launched by Seven Investment Management, the London-based provider of investment services to professional wealth managers, and Nestor Partnership, the financial advisor firm for personal injury victims, the firms said.

The fund, a result of over twelve months of research, is designed for personal injury investors who are able to invest for the longer-term, but who do not want to take undue investment risk with their capital. The fund is therefore seeking low volatility and reasonable returns.

In other words, the fund seems to be mostly interesting for investors who want better than cash returns, without stock market risks.

The fund, managed by 7IM, focuses on cash, gilts, corporate bonds and alternative investments.

“We have been very concerned about the investment strategies adopted by many personal injury victims and their advisers,” said Nicholas Martin, partner at Nestor Partnership, in a statement.

“Often, they are either faced with simply leaving their damages in cash deposits, which, as we know will rarely keep up with inflation, or, invest the money into more risky investments which creates issues and concerns, particularly if we look at the roller-coaster that we have experienced in the last few years,” he said.

“This did not seem right to us. Thus we began the process of building the personal injury fund, and we realised that a low-risk solution was feasible, using risk management techniques,” Mr Martin added.

Tom Sheridan, chief executive at 7IM added: “We believe a rigorous discipline and process of investment and risk management must apply here, but at the same time ensure that the necessary tenets of transparency and independence covering investments and costs are included.”